Your Inside Source for Options Information

December 26, 2017




Featured Interview

A favorite interview from Options Insider Radio 

Options Insider Radio Interviews: Talking Options, Millennials, and Crypto with StockTwits

Posted November 16th, 2017

In this episode, Mark is joined by Ian Rosen, CEO of StockTwits.

They discuss:

  • Ian's history in the financial services industry

  • What is Stocktober Fest?

  • What's new from StockTwits?

  • Demographics of StockTwits users

  • Flattening the onramp to investing

  • What percentage of users are active options traders?

  • How many people are discussing crypto?

  • Bringing in new options traders

  • StockTwits users level of interest in crypto


Upcoming Economic Reports

A preview of what may move the market this week

TIME (ET) REPORT PERIOD PREVIOUS
TUESDAY, DEC. 26
9:00 AM Case-Shiller home prices Oct. 6.10%
WEDNESDAY, DEC. 27
10:00 AM Consumer confidence index Dec. 129.5
10:00 AM Pending home sales Nov. 3.50%
THURSDAY, DEC. 28
8:30 AM Weekly jobless claims 23-Dec 245,000 
8:30 AM Advance trade in goods Nov. -$68.3bln
9:45 AM Chicago PMI Dec. 63.9

 


Options Insider Radio Network 

Episodes you may have missed from Options Insider Radio last week

Options Insider Radio Interviews: Talking CAT, Reg Tech and Burstiness with Thesys Technologies

Posted December 22nd, 2017

In this episode, Mark is joined by Mike Beller, CEO of Thesys Technologies. They discuss:

  • What is Thesys Technologies?

  • What does Thesys Technologies do?

  • CAT chat (consolidated audit trail)

  • What is the status of the CAT?

  • When will it go live?

  • Security issues being a hangup

  • Data management

  • Quote updates yield data burstiness

  • And more

 

Option Block 679: Bitcoin and Levered SPY Risk Reversals

Posted December 22nd, 2017

Trading Block: NKE after hours. ATM straddle - $3.40, approx. 5%. Looking back on 2017: The year without volatility.

Odd Block: More Jan 2019 50 "Catastrophe" puts in (TSLA). Size roll/diagonal in Autodesk Inc. (ADSK). Size call party in First Data Corp. (FDC). Closing call party in Blackstone Group LP (BX).

Strategy Block: Uncle Mike Tosaw discusses his most recent trading strategy in SPY.

Mail Block: Options question of the week.

Now it's a party! Bitcoin futures are live on both CME Group and CBOE. But everyone's asking us the $1M question, "When will we get Bitcoin Options?" So we thought we'd ask you: When will we be able to trade options on these futures?

  • Q1 2018

  • Q2 2018

  • Q3 2018

  • Q4 2018

Breaking News Poll: Are you interested in the new Bitcoin futures, except you hate futures? Maybe an ETF is more your speed? Are you interested in trading the new Bitcoin ETF announced today by ICE?

  • Yes

  • No

  • I prefer the Futures

  • This is getting crazy!

Listener questions and comments:

  • Comment from Tom - Let's be honest. If any of us had size Bitcoin we would have sold out ages ago and probably be kicking ourselves right now.

Around the Block/Economic News: Dec 22: Durable Goods, Personal Income, New Home Sales, Consumer Sentiment

 

OICs Wide World of Options 44: Panel - Do Earnings and Listed Options Go Together?

Posted December 22nd, 2017

 

Four times a year the markets react to corporate earnings announcements. If you decide to initiate options strategy in this environment, there are important factors to consider like: stock, index or ETF options? Will the effect of implied volatility have a greater impact on options prices than the stock movement itself? These questions along with specific option strategy ideas will be debated with our panelists from the CBOE/MIAX and moderated by Joe Burgoyne, Director of Individual Investor Education.

In this rebroadcast OICs webinar panel of experienced professionals will help you understand if earnings and listed options go together.

 

Options Playbook Radio 188: Covered Call with a Twist

Posted December 21st, 2017

In this episode, we are looking at a covered call, but with a twist: a credit spread around stock you already own. You can find more on page 80 of The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • FedEx announced earnings on 12/20, was up 3.5% after the announcement

  • It hit the all-time high on 12/20

  • What are the benefits of doing a credit spread instead of just a covered call?

  • Setting up the trade: picking expiration (and why that date)

  • Selecting strikes

  • What is the approach?

  • What is the risk?

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

 

Option Block 678: Is Donald Trump Long Bitcoin?

Posted December 19th, 2017

Trading Block: JPMorgan is lighting up Twitter. It's one of the bank's best ideas for 2018. A lot of div plays lighting up the tape today. Now it's a party! CME Bitcoin futures are live! Volume a little lighter in XBT now. Taleb is not a fan of Bitcoin - at least not without options. Petterrfy also hates Bitcoin - but it didn't stop him from buying ads on the futures.

Odd Block: More Jan 2019 50 "Catastrophe" puts in Tesla Motors (TSLA). Size call party in Regions Financial Corp (RF). Ratio call vertical in CSX Corporation (CSX). Rolling puts in Synchrony Financial (SYF).

Mail Block: Time to hear from you.

This week's Options Break: Finally seeing Star Wars "The Last Jedi." Did you see it? What did you think?

  • 24% - Better than Force Awakens

  • 24% - Worse than Force Awakens

  • 39% - Not a Star Wars fan

  • 13% - Better than Empire

Options Question of the Week: Now it's a party! Bitcoin futures are live on both CME Group and CBOE. But everyone's asking us the $1M question - "When will we get Bitcoin Options?" So we thought we'd ask you - When will we be able to trade options on these futures?

  • Q1 2018

  • Q2 2018

  • Q3 2018

  • Q4 2018

Listener questions and comments

  • Question from LLN8 - What products would you like to see on the bitcoin/crypto front?

  • Comment from TMal - Rumors that Donald Trump is long Bitcoin, hence why he hasn't opined on the big story of the year.

Around the Block/This Week in the Market

  • Dec 19: Housing Starts

  • Dec 20: Existing Home Sales

  • Dec 21: Jobless Claims, GDP

  • Dec 22: Durable Goods, Personal Income, New Home Sales, Consumer Sentiment


This Week in Futures Options 82: Preparing for the Bitcoin Real-Time Index

Posted December 18th, 2017

Topics this week include:

  • Crude Oil

  • Silver

  • Bitcoin

Futures Options Feedback: Listeners weigh in

  • Question from Knack - Like the show with the QuikSkew updates. What's the best way for me to take advantage of that information? Should I be trading risk reversals?

  • Question from B98 - I know straddle runs are big thing in the indexes. Don't hear them used much in the ags or metals though. Why's that?


Volatility Views 285: Bitcoin Futures and the Future of Bitcoin

Posted December 18th, 2017

Volatility Review: Tyler and Cameron Winklevoss discuss Bitcoin and Bitcoin Futures at FIA Asia. CBOE Benchmark Index discussion. CBOE Bitcoin futures surge 8% Friday, head for winning first week

The numbers:

  • VIX Cash - 9.79

  • VVIX - 92.77

  • CBOE Skew Index ? 131

Russell's Weekly Rundown

  • VIX Options: ADV - 737k, VIX call/put - 3.6, Total 13.6m (10.7m Calls, 2.99m Puts)

Volatility Voicemail: Listener questions and comments

  • Question from Alvanot - Can you trade the VIX index itself? Not the futures.

  • Question from The Financial Grynch - Do you REALLY reckon long options is profitable?

Crystal Ball: Wild and reckless prognostication

Last week:

  • Mark L. - 9.75

  • Mark S. - 9.15

  • Ghost of Russell - 35

  • Bill - 10

This week:

  • Mark S. - 10

  • Russell - 9.74

  • Bill - 8.99

 


Where to Find Options Insider Radio?

Do you know all the ways you can access Options Insider Radio

             


Options Insider Radio Network Live Recordings

Do you want to be a part of the fun?

This is when you can access the LIVE shows this week:

Monday:

Option Block LIVE at 3pm Central

Thursday:

Option Block LIVE at 3pm Central

Friday:

Volatility Views LIVE at 12pm Central

This Week in Futures Options LIVE at 1:30 Central. As always, you can join in the fun at http://mixlr.com/options-insider/


Stats from Last Week

  • VIX Cash Range: 8.9 - 10.18

  • S&P Cash Range: 2676.11 - 2694.97

  • SPX 30-Day Implied Volatility: 7.6

  • SPX 10-Day Realized Volatility: 6.24

  • SPX 30-Day Realized Volatility:  6.51

  • SPX Risk Premium (30-Day Implied - Realized): 1.09

  • Market Risk Premium (VIX Cash - SPX 30-day Implied Volatility): 2.58


 

Strategy 101: Brought to you by Ally Invest

Options Playbook Radio 165: GOOGL Skip-Strike Butterfly Part Two

Posted July 6th, 2017

Last week we looked at a GOOGL skip-strike butterfly. Staying on the same page, we will put on a new paper trade as a follow up for that one. You can find this on page 108 of The Options Playbook. This is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

In this episode:

  • A review of last week

  • What was the trade?

  • What did it cost?

  • What happened since?

  • What are we doing now?

  • Setting up the trade

  • Selecting strikes

  • What about expirations?

  • Max loss and gain?

Do you have questions that you would like answered on the show? Send them to Brian at theoptionsguy@invest.ally.com.


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